Residential rents fall after huge increase in vacancy rates, says report
For those people who have been constantly feeling the pinch of high residential rents, there is some news for cheer. If the current scenario is any indication, then rents for residential units are dropping fast after reaching a peak.
The rents had continued to climb consistently in the period between 2011 and 2015. So the current news should come as a huge relief for residents already stretched to the limits of their monthly budgets.
Global real estate firm DTZ, in its ‘Q3 2016 Property Times’ report, said it was unlikely for rents to increase again in the short term.
“It is unlikely that rents will increase again in the short term due to the pipeline of new supply that is likely to come to the market between now and 2018,” Gulf Times quoted the firm as saying.
A fall in demand for residential accommodation in the Pearl-Qatar, West Bay, Al Sadd, and Bin Mahmoud, combined with the completion of a large number of new buildings have resulted in a fall in rents in many developments.
People moving out of the city in search of affordable accommodation have also added to the speed of the rent drop.
“The increasing provisions of ‘affordable housing’ on the outskirts of Doha is putting pressure on landlords in more central locations to provide more flexible lease terms for vacant units, with many offering apartments and villas at rents that are between 5% and 10% below what would have been achieved in 2015,” the report said.
The same is the case with renting out of office spaces. There is currently a huge glut in the market, with it expected to increase with the completion of units in Qatar petroleum’s Financial District and other construction work at Lusail Development.
DTZ estimated that up to 2mn sqm of new office accommodation is planned for Qatar within the next decade, most notably in Lusail Marina District, Energy City, West Bay, and Msheireb.
If you are on the lookout for a house to live in or an office to rent, head over to Qatar Living’s Properties classifieds section. There’s something for everyone there.
They are right. I've noticed only high end villa prices have come down. Anything reasonably priced is still sky high because demand remains high. Now if only the price of schooling would come down.
Rents have been slightly reduce for high end villas and apartments... but still its expensive.. 2 bedroom furnished apartment is above 6k
It's not true. Ezdan has increased the rent from QR 5000/- to QR 6600/- at Al Mansoura - Bin Dirham area for renewal as well. They said, if you do not want to renew, you can vacate the flat as soon as possible.
Rony John: Valid point - I think the demand at the lower end means prices will stay same
First car business and now real estate business. good! both of them robbed poor customers for years. No sympathy for them!
Rents have come down but for higher ends only
I have been predicting this . Very good news for all